8.9 Asset Turnover Ratio Analysis Template

Why is the Asset Turnover Ratio Template important in a business plan for a small business like Green Lawn Landscaping, Inc.?

The Asset Turnover Ratio template gives a small business owner like Frank Murphy an excellent way to present the reader of the business plan with the projected Asset Turnover Ratio for the three years that are being included in the plan. Further more it gives a small business owner like Frank Murphy the ability to show this ratio in both numerical and graphic format.

The asset turnover ratio is a key ratio that measures the ability of a small business like Green Lawn Landscaping, Inc. to cover its assets with its revenues / sales. As a general rule the higher the Asset Turnover ratio, the better it is for the small business.

What calculations go into the Asset Turnover ratio Template for a Landscape Contractor?

There are only two inputs that go into the template for Asset Turnover ratio for a small business like Green Lawn Landscaping, Inc.. The first of course is the total sales and the other is the Total Assets for the small business. These numbers are of course the projected numbers for the three years which are being included in the financial plan.

A small business owner like Frank Murphy has to simply input both these items in the template and the rest is done automatically by the template which will calculate the Asset Turnover ratio as well as update the graphic. You can click on the output tab to copy and paste the output directly into your business plan word document.